FX.co ★ Elliott Wave Analysis of EUR/NZD for February 25, 2013

Today's Support and Resistance Levels:

S1: 1.5746 R1: 1.5786

S2: 1.5706 R2: 1.5820

S3: 1.5640 R3: 1.5850

Technical Overview:

Our call for a decline to 1.5682 worked out perfectly, as we saw a decline to 1.5686 followed by the expected rally. We are still looking for a test of strong resistance near 1.5849 before wave c down is ready to take over. That said, a break below 1.5746 will be the first warning that wave c is down to 1.5467 and more likely 1.5176 is under way. A break below support at 1.5701 will confirm that wave c has taken over for the next powerful decline in this expanded ending diagonal.

Trading recommendation:

We will sell EUR at 1.5840 or at 1.5740 (one order cancels the other) with a stop at 1.5950.